Company's Characteristics and Social Disclosure: Earnings Response Coefficient as A Mediator
Keywords:
leverage, company size, social disclosure, earnings response coefficientAbstract
This research aims to examine the influence of leverage, company size and social disclosure on the earnings response coefficient as an intervening variable. This type of research uses associative studies which suggest variable relationships using quantitative methods. The population in this research is manufacturing companies that were registered with an IPO before 2016 and were still listed on the IDX from 2016 to 2020, totaling 52 companies. The results of this research show that leverage ability, company size, and social disclosure have an influence on the earning response coefficient. For this reason, this regression model is suitable for testing to examine the effect of leverage on the earning response coefficient. Furthermore, the company size variable has a positive influence on ERC in various industrial sector companies on the Indonesian Stock Exchange. The larger the company size is considered to increase the market response because the company is considered capable of providing high returns. The social disclosure variable has no influence on ERC in various industrial sector companies on the Indonesian Stock Exchange. Social disclosure is a principle or reaction carried out by companies to participate in community activities in general. This practice causes the company's asset value and profits to be low, while the debt value and losses are high. Thus, high social disclosure is considered to reduce market response. On the other hand, low social disclosure is considered to increase market response.
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